In accounting equation what should we do to the interest on drawings

1.	In accounting equation what should we do to the interest on drawings
Answer» The treatment of interest on drawing and interest on capital is same in accounting equation .....the amount of interest on drawing is first added to capital and then subtracted from capital because it is an income for business as well as expense therefore incomes are added to capital and expenses are subtracted from capital<br>All format will be as it is but only in capital side first add interest on drawing and second deduct same amount in capital<br>Interest on drawing have zero effect on accounting equation. First it should added into capital and than deducted from capital.

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